Technical Analysis and Market Entry: BNB/USDT Moving Within Bullish Pennant Structure Subject To A Breakout
- Binance Coin is moving back within a bullish trend, running towards three consecutive weeks in the green.
- BNB/USDT price action is consolidating ahead of further potential moves to the north.
BNB/USDT: Recent Price Behaviour
Binance Coin this month has been enjoying a decent pump to the upside, making a strong start to the year. The price has gained as much as 42% from the commencing of 2020, jumping up the highest levels seen since November 2019. It reached heights of $18.50, before running into a known area of supply. The noted zone runs from $18.50 down to $17.50, it had previously caused problems for the bulls in October 2019, before being breached.
The market bulls are demonstrating very promising signage of a more sustainable recovery. BNB/USDT could be heading for its third consecutive week in the green, given the impressive current run higher. The stability comes after the massive beating that was observed from the second half of 2019.
BNB/USDT was aggressively moving to the upside from January up until June 2019, before losing bullish momentum. A steep bear market then came into play, which saw much of the 2019 gains being given up. The price did manage to bottom out in December, forming a hammer candlestick in the week of 16 December. BNB bulls have been pushing to the north, following this provided signal of an incoming trend change.
Weekly Chart View
The weekly chart view shows how the $15.00 price territory was a significant area to be conquered again by the bulls for more considerable upside. It was an area that had provided much support for the price between the period of September – November. The price breaching this in December could have proven to be very problematic, in acting as a new strong supply. However, the bullish momentum managed to carry the price back through and above.
Daily Chart View
Price action between the 17 December up until the 13 January, was moving within the confinements of a bearish flag structure. It was at the time looking increasingly likely BNB/USDT was going to have another wave of selling pressure. However, market bulls were able to free the price from this bearish technical pattern, pushing above a critical zone also on 14 January.
Over the last seven sessions, BNB/USDT has been moving within consolidation mode, following a strong push higher. Critical daily support should be noted at around $16.30, a price that has proven its significance over the past few months. Failure of this holding during this current cooling period could prove to be damaging for the recent gains.
Price action via the daily chart view is moving within a bullish pennant structure, subject to a breakout higher. A buy entry from around the current mark is attractive, given the noted bull structure. In terms of targets; $20, $21, and then $22. Stops to be placed below the pennant at $16.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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